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SECTION 7 - CLAIMS If any dispute shall arise between City and Contractor regarding performance of the work, or any alleged change in the work, Contractor shall timely perform the disputed work and shall give written notice of a claim for additional compensation for the work to City within ten (10) days after commencement of the disputed work. Contractor's failure to give written notice within the ten (10) day period constitutes an agreement by Contractor that it will receive no extra compensation for the disputed work. SECTION 8 - INSPECTION AND PROTECTION OF WORK A. Contractor shall make the work accessible at all reasonable times for inspection by the City. B. When any of the Work is completed, Contractor shall request, in writing, an inspection. Within two (2) days of the receipt of such request, the City shall make an inspection. The Contractor or its representatives may be present at the inspection. The purpose of such inspection shall be to determine whether the Work has been completed in accordance with the Contract Documents, including all change orders and all interpretations and instructions previously issued. SECTION 9 - ASSIGNMENT AND SUBCONTRACTING A. Contractor shall give personal attention to the performance of the Contract and shall keep the Work under its control. B. No subcontractors will be recognized as such, and all persons engaged in the work of construction will be considered as employees of the Contractor, who will be held responsible for their work which shall be subject to the provisions of the Contract and specifications. C. When a portion of the work which has been subcontracted by the Contractor is not being prosecuted in a manner satisfactory to the City Engineer, the subcontractor shall be removed immediately on the request of the City Engineer and shall not again be employed on the work. SECTION 10 - TERMINATION A. Should Contractor fail within three (3) working days from receipt of City's written notice to correct any contractual deficiencies, including but not limited to failure to perform the Work in accordance with the Contract Documents, failure to comply with the directions of City, or failure pay its creditors, City may terminate this Contract. Following a termination for default, City shall have the right to take whatever steps it deems necessary to correct and complete the Work and charge the cost thereof to Contractor, who shall be liable for the full cost of City's corrective action, including reasonable overhead, profit and attorneys' fees. B. City may at any time terminate the Contract at City's convenience upon five days written notice to Contractor; in the event of termination for convenience, Contractor shall recover only the amount due for work completed to the date of termination. Contractor shall not be entitled to any claim or lien against City for any additional compensation or damages in the event of such termination. C. If City terminates Contractor for cause, and if it is later determined that the termination was wrongful, such default termination shall automatically be converted to and treated as a termination for convenience. In such event, Contractor shall be entitled to receive only the amounts payable under this section, and Contractor specifically waives any claim for any other amounts or damages, including, but not limited to, any claim for consequential damages or lost profits. ATTY/AGR/2009.039 090909 4